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Local Economic Conditions and Wage Labor Decisions of Farm and Rural Nonfarm Couples

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  • Tokle, J. G.
  • Huffman, Wallace

Abstract

Effects of geographical differences in local economic conditions on wage labor demand and wage labor participation decisions of rural couples are examined for Current Population Survey households 1978-82. Wage premiums are shown to exist for localities anticipating labor demand growth, higher unemployment rates, larger share of employment in services, and higher costs of living. These effects are stronger for males than females. Effects of local economic conditions on the probability of wage work are consistent with expected market wage and reservation wage effects, and for farm households the probability of wage work increases when expected farm output prices decline or the wage increases.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10988.

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Date of creation: 01 Aug 1991
Date of revision:
Publication status: Published in American Journal of Agricultural Economics, August 1991, vol. 73, pp. 652-670
Handle: RePEc:isu:genres:10988

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Cited by:
  1. Loughrey, Jason & Hennessy,Thia & Hanrahan, Kevin & Donnellan, Trevor & Raimondi, Valentina & Olper, Alessandro, 2013. "Determinants of Farm Labour Use: A Comparison between Ireland and Italy," Factor Markets Working Papers 172, Centre for European Policy Studies.
  2. Ayal Kimhi, 2004. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 502-512.
  3. Mishra, Ashok K. & Chang, Hung-Hao, 2012. "Can off farm employment affect the privatization of social safety net? The case of self-employed farm households," Food Policy, Elsevier, vol. 37(1), pages 94-101.
  4. Falkowski, Jan & Jakubowski, Maciej & Strawinski, Pawel, 2013. "Returns from Income Strategies in Rural Poland," Factor Markets Working Papers 178, Centre for European Policy Studies.
  5. Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2008. "Labor market participation of Chinese agricultural households: Empirical evidence from Zhejiang province," Food Policy, Elsevier, vol. 33(4), pages 329-340, August.
  6. Ahearn, Mary Clare & El-Osta, Hisham & Mishra, Ashok K., 2013. "Considerations in Work Choices of U.S. Farm Households: The Role of Health Insurance," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(1), April.
  7. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 42, number 92321.
  8. Castro Campos, Bente, 2013. "Human capital differences or labor market discrimination? The occupational outcomes of ethnic minorities in rural Guizhou (China)," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 73, number 73.
  9. Gedikoglu, Haluk & McCann, Laura M.J. & Artz, Georgeanne M., 2011. "Off-Farm Employment Effects on Adoption of Nutrient Management Practices," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), August.
  10. Chang, Hung-Hao & Mishra, Ashok, 2008. "Impact of off-farm labor supply on food expenditures of the farm household," Food Policy, Elsevier, vol. 33(6), pages 657-664, December.
  11. Harsche, Johannes, 2007. "Bestimmungsfaktoren für das Erwerbsverhalten von Landwirten unter besonderer Berücksichtigung der Unternehmereigenschaften," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(2).
  12. Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
  13. Donnellan, Trevor & Hennessy, Thia, 2012. "Defining a theoretical model of farm households’ labour allocation decisions," Factor Markets Working Papers 140, Centre for European Policy Studies.
  14. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, . "Key Issues in Agricultural Labour Markets: A Review of Major Studies and Project Reports on Agriculture and Rural Labour Markets," Factor Markets Working Papers 126, Centre for European Policy Studies.
  15. Chang, Yang-Ming & Huang, Biing-Wen & Chen, Yun-Ju, 2012. "Labor supply, income, and welfare of the farm household," Labour Economics, Elsevier, vol. 19(3), pages 427-437.

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